Ethics vs Professionalism

[bphgravity]

I recently attended a management seminar where the instructor felt that varying prices according to the situation or by pure randomness is an unethical practice. For example, he stated that raising a price simply because of the size of the customers house or by what car they drive should be prohibited. I feel there is a fine line between ethics and professionalism. It may not be a professional way to do buisness, but is it unethical? Ethics to me means that you hold to the value, quality, and safety standards on all jobs no matter how big or small. However, if I raise my price because I think I can get it and I think the customer can afford it, that is business and not ethics. And I do not mean price hiking during an emergency, that is unethical. Regular business, regular circumstances. Any thoughts?

[ April 30, 2003, 07:02 AM: Message edited by: bphgravity ]

[ed downey]

Bphgravity, I Agree Whole Heartly With Your Views On Ethics & Professionalism. If The Owner Feels He Is Not Getting The Best Price He Has The Right To Go Elsewhere For A Quote. As A Contractor You Are Entitled To Get What Is A Fair Profit ANd As A Contractor You Are The Only One Who Can Determine What Is Fair From Job To Job.

[bryonb]

I agree totally. The situation can be reversed where I would discount the cost of a project if I felt that the customer was not in a financial situation to pay for the job to be done right, such as a residential service call for a low income family.

[iwire]

I agree with you BP that is how the guy I started in the trade with did business and I always considered it not only ethical but a nice thing to do.

Not up the charge when you see the people have money, but reduce the charge when they look like they need the work done for safety reasons and can not afford the full price. We would often fix things no charge if he thought it should be done.

How this would be unethical I do not understand.

[electricmanscott]

I don't neccesarily do this but I certainly don't have a problem with it. I will absolutely adjust according to attitude. (Theirs not mine )

[luke warmwater]

BPH, I agree with you also.
We will adjust up or down. Usually upping the price is because of the p.i.t.a. factor. We might discount for a low income family or seior citizen.
Would it be unethical for a supply house to charge more to a walk in customer than to an account customer. I don't think so.
Also, is it unethical for a grocery store chain to have higher prices in a richer part of town, or for an insurance company to have higher rates in a certain demographic?
This practice is done in all types of business. That's business.

[russellroberts]

Imho,raising your normal price on a large or difficult job is ok in a bidding situation. But on a t&m job charging 100.00 hr. when you normally get 50 just because you can is unprofessional as well as unethical. Of course there's the p.i.t.a factor as luke said.Maybe thats why I ain't rich.

[definitive]

Ethics and professionalism are two virtues that should exist in your craftsmanship. They dont fit in the world of negotiation, if you can get $100 per hour on a job....FANTASTIC!! The customer is only concerned with the final product, if they dont like the price, they should find someone else. Any intelligent consumer will be getting a number of estimates, if you can sell them on yours, thats how you make money.
The exception to this ofcourse is when you have a repeat customer that expects a consistant rate. you cant spring price increases after the fact. If the customer knows what you charge in advance, and signs a contract, give them what they ask for.

[mark]

That's why some teach and some do.

[bphgravity]

I am an instructor and a contractor. So whats that mean? :p